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EXHIBIT 99.1
[infoUSA LETTERHEAD]
infoUSA REPORTS RECORD EBITDA FOR FIRST QUARTER 2001
(OMAHA, NE) -- infoUSA(R) (Nasdaq: IUSA) today announced its operating results
for the first quarter of fiscal year 2001. The following table presents the
financial results, key financial highlights of the company's operations and
selected balance sheet items for the first quarter of fiscal year 2001:
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) 1Q00 1Q01
Net sales 81,521 73,853
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EBITDA, as adjusted (1) 18,594 25,205
EBITDA margin 23% 34%
Operating pretax earnings (2) 14,395 20,256
Net income (loss) (11,560) 1,854
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EPS - fully diluted $ (0.23) $ 0.04
EPS - cash basis, fully diluted (3) $ (0.07) $ 0.19
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Non-cash stock compensation expense 1,222 77
Restructuring costs -- 876
Acquisition costs 1,380 --
Gain on issuance of subsidiary stock 2,429 --
Cumulative effect of accounting changes (10,266) --
Loss on discontinued operations (1,004) --
Depreciation and amortization of operating assets 4,199 4,949
Goodwill amortization 7,959 7,784
Interest expense 6,784 6,914
Total debt 261,519 248,736
Capital expenditures 7,877 1,835
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Number of basic shares outstanding 49,610 50,609
Number of diluted shares outstanding 49,610 50,609
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Accounts receivable (DSO) - without Walter Karl (4) 71 64
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(1) EBITDA excluding non-cash stock compensation expense, restructuring costs
and acquisition costs, and including losses for Internet operations in
2000.
(2) Excluding non-cash stock compensation expense, restructuring costs,
acquisition costs and goodwill amortization, and including losses for
Internet operations in 2000.
(3) Net income (loss) plus goodwill amortization (per share)
(4) Walter Karl is a list broker. Trade accounts receivable and trade accounts
payable are reflected at gross on the balance sheet.
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RESULTS OF OPERATIONS
Vin Gupta, Chairman and CEO, infoUSA, said, "Our results for the first quarter
of 2001 represent a return to the earnings and profitability we have
historically experienced in our core business. The fact that we achieved these
results during the most severe U.S. economic slowdown in a decade is extremely
encouraging. While our revenues of $73.9 million were below first quarter
revenues of $81.5 million in 2000, they increased over fourth quarter 2000
revenues of $70.4 million. We closed several deals with new customers in all of
our divisions. This is significant in that we signed new business at a time when
many of our customers and prospects were curtailing or postponing orders due to
the weakened economy."
Gupta continued, "We are very pleased with the results of our cost cutting,
which enabled the company to reach record EBITDA of $25.2 million and restore
profitability to historical levels, with EBITDA margins in excess of 34%. Going
forward, we remain confident that we can continue to benefit from strong cash
flow and expense control."
HIGHLIGHTS OF FIRST QUARTER:
infoUSA INC. - CONSOLIDATED
Net sales for the first quarter were $73.9 million compared to $70.4 million for
the fourth quarter of 2000 and $81.5 million for the first quarter of 2000.
EBITDA, as adjusted, for the first quarter was $25.2 million, or 34% of net
sales, compared to $18.6 million, or 23% of net sales, for Q1 last year. EBITDA
for the core business (excluding the Internet companies) was $25.0 million, or
35% of net sales, for the first quarter compared to $24.8 million, or 30% of net
sales, for Q1 last year. First quarter earnings per share was $0.04 compared to
loss per share of $0.23 last year. First quarter EPS on a cash basis was $0.19
compared to a loss of $0.07 last year.
During the first quarter of 2001, the company recorded restructuring charges of
$0.9 million, reflecting severance for approximately 150 employees terminated
during January 2001. This staffing reduction was in addition to the
approximately 350 employees terminated during December 2000.
infoUSA.com - a majority-owned subsidiary of the company, reported revenue of
$5.0 million for the first quarter of 2001 compared to $4.9 million last year.
During the first quarter the subsidiary recorded EBITDA, as adjusted, of $0.2
million, compared to an EBITDA, as adjusted, loss of $2.6 million for Q1 last
year.
OPERATING HIGHLIGHTS
PROPRIETARY DATABASE COMPILATION DEPARTMENT
During the first quarter of 2001 the company continued to enhance both its
consumer and business databases. Most recently, infoUSA introduced
e-ShareForce(TM), its new proprietary vertical market business and consumer
response files. The company has rolled out over 20 new specialty databases, and
plans to introduce several more over the next quarter. Several of these new
databases contain e-mail address information. Some of the databases rolled out
include Hi-tech Households; Households by lifestyle interests; Mail-order and
Internet buyers; Investors; Professionals; Female professionals; Executive
emails; New businesses; Home based businesses; Business Websites with
firmographics; Ethnic executives; Growing businesses; and New Homeowners.
e-ShareForce(TM) expands the company's ShareForce(TM) brand leadership in
combining self reported information from mail surveys with data from millions of
self-reported telephone and Internet surveys and its traditional compiled
databases. This strategy combines very rich compiled information with response
information, including emails, and translates it into highly targeted and
segmented lists. In addition to providing unique information, the addition of
emails to e-ShareForce(TM) products enable marketers to test offers to various
prospect segments online, and rollout comprehensive direct mail campaigns based
on the response from these low cost and quick turnaround campaigns.
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Also during the first quarter, the database group developed a new service to be
offered as part of the e-ShareForce(TM) suite of products. This service, called
infoResponse, offers infoUSA clients custom Internet survey collection data that
is "tailor-made" to each clients needs and specifications. This service provides
unique and targeted leads that are unavailable through traditional information
companies. For example, a well known pharmaceutical company is using
infoResponse to target allergy sufferers and a large casino uses the service to
get information on individual gaming preferences. This service is receiving
strong demand by several Fortune 100 companies.
LARGE CUSTOMER GROUP - DONNELLEY MARKETING AND WALTER KARL
The Large Customer group reported first quarter 2001 revenues of $27.3 million
versus $27.6 million for fourth quarter 2000 and $29.9 million for the first
quarter of the prior year. Despite softer customer demand due to the
macroeconomic downturn and the adverse impact on its customers from the postal
rate increase, the group has been able to increase its profitability. This is
due to favorable changes in its business mix, including the addition of new
customers in the financial, telecommunications and direct marketing industry
that purchased higher margin core content and processing services. The group
also benefited from the cost containment programs implemented during the past
two quarters. Although Donnelley Marketing experienced weaker demand from
existing customers during the quarter, it successfully added several new
infoConnect(TM) customers from firms in the packaged goods, cable, and high-tech
industries. infoConnect(TM) is Donnelley's leading e-CRM and data integration
solution, containing all of the "Abilitec" features and functions. Going
forward, the group will continue to focus on profitable revenue growth and
client acquisition by emphasizing its innovative new products and superior
customer service.
SMALL BUSINESS GROUP
The Small Business Group reported revenues of $30.9 million for the first
quarter of 2001, versus $29.2 million for fourth quarter 2000 and $33.2 million
for the first quarter of 2000. Last year's revenue included a $1 million
nonrecurring sale of consumer data to the United States Census Bureau for Census
2000. The Small Business Group experienced double digit revenue growth and
increased profitability during the first quarter 2001 from several of its
vertical market groups. These include the Middle Market, Library, infoCanada
operations and American Church List divisions. In addition, revenues for the
group's Internet divisions, ListBazaar.com and businessCreditUSA.com, increased
sharply, and both sites were highly profitable. Field Sales offices, which
provide consultative sales solutions to small businesses, increased revenue by
15% to $3.1 million, and the company believes this market has continued high
growth potential. Revenues from the Reseller group were particularly weak for
the first quarter of 2001. Resellers, which function as "middlemen" between
infoUSA and ultimate consumers, were most adversely affected by the economic
downturn during the first quarter. infoUSA is addressing this situation by
offering more favorable terms to their reseller customers, and believes sales to
this group will rebound as the economy recovers.
DATABASE LICENSES (NON-INTERNET)
The Database License group recorded revenues during the first quarter of $7.6
million, up from $6.9 million in the fourth quarter and versus $8.6 million in
the first quarter of 2000. The decrease is attributable to the loss of one
licensee due to its acquisition by another company, and to the change in timing
and terms of certain annual license renewals. During the quarter the group
signed two new contracts with wireless mapping and electronic in-car navigation
companies. The group also benefited from the expansion of existing contract
revenues and three new site licenses with data processing service bureaus in the
direct marketing industry.
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infoUSA.com
During the first quarter, infoUSA.com renewed and expanded its multi-year
contract with Microsoft to be the exclusive source of yellow page data on MSN.
At the end of the quarter the company signed a comprehensive long term licensing
agreement with AOL, encompassing a wide range of infoUSA's yellow and white page
information, as well as proprietary vertical market and multimedia data.
Additionally, infoUSA.com has most recently signed two new deals with Vindigo
and OmniSky in the mobile device and wireless markets. Under the new agreement
with Vindigo, mobile device users will be able to access local guides containing
infoUSA data on shopping and other value-added location based information. As
per the new agreement with OmniSky, users of Palm, Handspring and other mobile
devices will be able to access infoUSA.com's database of 14 million businesses.
The company believes that the strength of these recent deals indicates a
continuing high level of demand by leading technology companies for its top
quality proprietary data.
CONFERENCE CALL
The company will host its first quarter conference call on Monday, April 16,
2001, at 3PM Eastern Time. To access the conference call, please dial 719/
457-2617, passcode # 785235, approximately 10 minutes prior to the start of the
call. A replay of the call will be available from 7:00 PM Eastern time, April
16, through midnight, Eastern time, April 22. The replay number is 719/457-0820,
passcode # 785235.
ABOUT infoUSA
infoUSA (www.infoUSA.com), founded in 1972, is the leading provider of business
and consumer information products, database marketing services, data processing
services and sales and marketing solutions. Content is the essential ingredient
in every marketing program, and infoUSA has the most comprehensive data in the
industry, and is the only company to own a proprietary database of 250 million
consumers and 14 million businesses under one roof. The infoUSA database powers
the directory services of the top Internet traffic-generating sites, including
Yahoo! (Nasdaq:YHOO - news) and Microsoft (Nasdaq:MSFT - news). Nearly 3 million
customers use infoUSA's products and services to find new customers, grow their
sales, and for other direct marketing, telemarketing, customer analysis and
credit reference purposes. infoUSA headquarters are located at 5711 S. 86th
Circle, Omaha, NE 68127 and can be contacted at (402) 593-4500.
Statements in this announcement other than historical data and information
constitute forward looking statements that involve risks and uncertainties that
could cause actual results to differ materially from those stated or implied by
such forward-looking statements. The potential risks and uncertainties include,
but are not limited to, recent changes in senior management, the successful
integration of recent and future acquisitions, fluctuations in operating
results, failure to successfully carry out our Internet strategy or to grow our
Internet revenue, effects of leverage, changes in technology and increased
competition. More information about potential factors that could affect the
company's business and financial results is included in the company's filings
with the Securities and Exchange Commission.
INCOME STATEMENT FOLLOWS
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infoUSA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
FOR THE QUARTERS ENDED
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MARCH 31, MARCH 31,
2000 2001
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(UNAUDITED)
Net sales $ 81,521 $ 73,853
Costs and expenses:
Database and production costs 25,683 21,387
Selling, general and administrative 37,244 27,261
Depreciation and amortization of software development costs 4,199 4,949
Non-cash stock compensation expense 1,222 77
Restructuring costs -- 876
Acquisition costs 1,380 --
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69,728 54,550
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Operating income 11,793 19,303
Other income (expense):
Investment income 204 245
Gain on sale of subsidiary stock 2,429 --
Minority interest in subsidiary 274 (60)
Interest expense (6,784) (6,914)
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Income (loss) from continuing operations before income
taxes, extraordinary item and cumulative effect of
change in accounting principle (43) 4,790
Income taxes 247 2,936
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Income (loss) from continuing operations
before extraordinary item and cumulative effect of change in
accounting principle (290) 1,854
Discontinued operations, net of tax (1,004) --
Cumulative effect of accounting change, net of tax (10,266) --
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Net income (loss) $ (11,560) $ 1,854
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DILUTED EARNINGS PER SHARE:
Income (loss) from continuing operations $ (0.01) $ 0.04
Discontinued operations and cumulative effect of change in
accounting principle (0.22) --
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Diluted earnings (loss) per share $ (0.23) $ 0.04
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Cash earnings per share $ (0.07) $ 0.19
Weighted average shares outstanding 49,610 50,609
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EBITDA, as adjusted $ 18,594 $ 25,205
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